I have been self employed for 12 years and a small supplier for all 12 years. However this Dec 2023 I finally reached just over 30K. In Jan 2024 I have given up aspects of my business which will decrease my revenue by 6K or more. My financial advisor told me that I will not need to register my business for GST due to this. Does anybody have experience with this kind of situation? Thanks.
Your financial advisor is not an accountant. Unless they have experience with filing tax returns but regardless, their opinion is incorrect.
If your business generates a minimum of $30,000 in yearly revenue OR over four consecutive calendar quarters, you are required to register for a GST/HST account. Additionally, you should start remitting any GST/HST collected from taxable goods and services to the CRA.
I would suggest you speak to an accountant or a tax professional that is well versed with this and your business industry.
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@GuyWhoPlaysGolf has it correct - at least for 2024. You MAY, if your income subsides below the $30K level, be able to opt out and return to small supplier status for 2025.
But as soon as you cross that threshold in any four consecutive calendar quarters, you are required to register (assuming that all supplies are considered taxable supplies of goods or services).
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To cancel your registration you will have to provide a good reason, as in a significant portion of the business was sold or reduced and that you do not anticipate being over $30,000 gross revenue per year in the foreseeable future.
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